CEER Status Review Report on Regulatory Frameworks for Innovation in Electricity Transmission Infrastructure
27 October 2020
Today, CEER publishes its CEER Status Review Report on Regulatory Frameworks for Innovation in Electricity Transmission Infrastructure. This follows on the Energy Infrastructure Forum 2019, which invited National Regulatory Authorities (NRAs) to review their regulatory practice regarding innovation in light of the recommendations of a consultancy study. The Council of European Energy Regulators (CEER) and NRAs were invited to present a progress report on the regulatory practices at the next Forum, of which this one focuses on the electricity sector.
This report finds that there is a lack of formal definitions of innovation in legislative or regulatory frameworks. Though, the vast majority of European National Regulatory Authorities (NRAs) share a common understanding that innovation in electricity transmission is mostly correlated with developments that increase grid efficiency and benefits for consumers at the same (or at even lower) cost.
The report also identifies that innovation in electricity transmission is mostly promoted indirectly via the general regulatory framework and/or via specific features regarding incentives for network performance (output-based regulation).
Following the identification of several legislative barriers to innovations in some countries, such as the lack of NRA powers to implement certain decisions regarding tariffs; and the lack of NRA powers/duties to consult the network development plan and to approve it, European energy regulators recommend that:
- It is essential to provide NRAs with sufficient leverage and regulatory control over tariff setting; and
- NRAs should be empowered to approve and to amend the national transmission network development plans.
Please read the full report here.
The document’s main conclusions will be presented at the 2020 Energy Infrastructure ('Copenhagen') Forum taking place on Thursday 29 October.